Basic Material Dividend Stocks With High Return On Investments And Big Operating Margins Researched By Dividend Yield - Stock, Capital, Investment. Basic materials are the source of all economic activities but their prices are very cyclic and something like the fever curve of the economy. In booming times, basic resources are rare and prices high; therefore margins are very high.
I screened the basic material sector by the most profitable stocks (stocks with an operating margin and return on investment over 20 percent) with a dividend yield over 1 percent. Because of the huge amount of results (24 stocks), I selected only those stocks with a market capitalization above USD 2 billion. Thirteen companies' fulfilled these criteria of which five are high yields and nine are recommended to buy or better.
Here is the full table with some fundamentals:
The Best Basic Material Dividend Stocks...
Take a closer look at the full table. The average price to earnings ratio (P/E ratio) amounts to 10.63 and forward P/E ratio is 10.24. The dividend yield has a value of 4.04 percent. Price to book ratio is 4.68 and price to sales ratio 3.76. The operating margin amounts to 44.66 percent. Finally, the return on equity has a fantastic margin of 48.70 percent and the return on investment follows with a value of 42.56 percent.
Related stock ticker symbols:
TNH, BPT, SCCO, ARLP, AHGP, BBL, RES, BHP, CEO, FCX, KRO, BVN, POT